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(Enclosure 1.)

No. 28A, DES VEUX ROAD CENTRAL,

HONGKONG, 20th November, 1914.

Re Kowloon Bay Reclamation Scheme.

SIR,-With reference to your letter of the 19th May last numbered 2075/1913 addressed to the late Sir KAI HO-KAI and his reply thereto I am instructed by Messrs. AU TACK and CHEONG SUM-WOO, promoters of the above Scheme, to forward you herewith plan of a site at Kowloon Bay proposed to be reclaimed and submit the following pro- posals for the favourable consideration of the Government.

This Scheme was initiated at the suggestion of the late Sir KAI HO-KAI with the following objects in view namely:-

(a) to provide a settlement for the better class of Chinese in order to relief the overcrowding at Hongkong caused by the influx of Chinese from Canton on account of the unsettled state of the Kwongtung Province of China.

(b) to accommodate the wealthy Chinese who came from Canton with better residences, so that they may make their home here and invest their capital in the Colony.

A rough survey of the site was made at the beginning of the year but as it was uncertain that it could be made available for the purposes of the above Scheme no further step was taken until the receipt of your letter now under reply. Since then a detail survey of the site has been made and a careful estimate obtained of the costs of works to be done and my clients therefore instruct me to lay before the Government the following particulars of their Scheme :----

1. That the Government be requested to grant to the promoters the foreshore at Kowloon Bay, between the Kowloon City pier and Tai Wan Glass Work, as delineated on the accompanying plan for the purposes of reclaiming and laying out the same in building lots. The whole area of land reclaimed will amount to approximately 210 acres including nullahs, roads, building land, sea wall, etc., etc., while the area available for development purposes exclusive of roads, etc., etc., amount to about 4,950,000 square feet.

2. The promoters will bear the whole cost of the reclamation which is at present estimated at about $1,100,000 exclusive of any premium to be paid to the Government.

3. The promoters will pay to the Government a sum of $50,000 as a premium for the whole plot of land indicated on the plan but the Government will pay for the resumption of any land within that area which does not belong to the Government or the promoters.

4. The promoters will bear the cost of constructing all nullahs and of forming all roads and will hand over the same, when completed, to the Govern- ment as Government property.

5. The promoters will not claim any marine rights to the reclaimed land but the Government will undertake not to allow any noisome or obnoxious trade to be carried on at any part of a future reclamation or extension in front of the present proposed site.

6. The Government will grant to the promoters a pier right to erect 3 wharfs, with a frontage of 100 feet wide each, at the points where indicated on the plan for a term of years co-extensive with the term of years to be granted on the building land.

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